WASHINGTON, March 7 (Reuters) – At his last press conference U.S. Federal Reserve Chair Jerome Powell said confidently a “disinflationary process” had begun, showing a “gratifying” corner had been turned even as he pledged the central bank’s fight against rising prices was not over.
But inflation data since his Feb. 1 remarks has moved in the other direction – an inflation “surprise” index from Citigroup rose in February for the first time in months – and when Powell testifies before the Senate Banking Committee on Tuesday the focus will be on whether he remains as confident as he was then that the Fed is on the right path to keep inflation steadily falling towards its 2% target.
Full coverage: REUTERS
Sri Lanka Expects Approval Of $2.9 Billion IMF Deal After China Support
COLOMBO, March 7 (Reuters) – Sri Lanka expects final approval from the International Monetary Fund for a $2.9 billion loan in the third or fourth week of this month, the president said on Tuesday, adding that new support from China means all funding requirements had been met.
The country of 22 million people is struggling with its worst economic crisis since independence from Britain in 1948.
President Ranil Wickremesinghe told parliament there were signs the economy was improving but there was still insufficient foreign currency for all imports, making the IMF deal crucial so other creditors could also start releasing funds.
Full coverage: REUTERS
Japan’s Real Wages Drop At Fastest Pace Since 2014 As Hot Inflation Takes Toll
TOKYO, March 7 (Reuters) – Japan’s real wages fell the most in nearly nine years in January, official data showed, as four-decade-high inflation squeezed the purchasing power of consumers and undercut efforts by policymakers to revive a COVID-ravaged economy.
Wage trends in the world’s third-largest economy are under close market scrutiny because Bank of Japan officials have said that pay hikes, combined with 2% inflation, are essential to it scaling back its loose monetary policy.
Full coverage: REUTERS
Oil Steady As Supply Worries Offset China Demand Uncertainty
SINGAPORE, March 7 (Reuters) – Oil prices were little changed on Tuesday, after rising for the past five sessions, as concerns about limited spare capacity in the market and uncertainty over Russian supplies offset mixed oil data from top crude importer China.
Brent crude futures rose 18 cents to $86.36 per barrel by 0730 GMT after settling 0.4% higher on Monday.
U.S. West Texas Intermediate crude was at $80.62 per barrel, up 16 cents, following a 1% gain in the previous session.
Full coverage: REUTERS
Morning Bid: Don’t Fight Central Banks
A look at the day ahead in European and global markets from Anshuman Daga.
Judging by the improved mood in global equity markets, investors are once again having a go at central banks.
Despite a slew of data from around the world showing stronger-than-expected performance in economies and labour markets – red signals for inflation – equities are on the mend.
MSCI’s world index of global shares has recovered more than 2% this month after slipping 3% in February and erasing a huge chunk of January’s 7% gain.
Full coverage: REUTERS
